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Taking Stock With Pimm Fox

Pimm Fox helps you to think like a professional investor and discover the next big thing.

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01:01:00

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San Francisco, CA, USA

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Comcast Cable

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Channel v106

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mpeg2video

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ac3

PIXEL WIDTH
720

PIXEL HEIGHT
480

TOPIC FREQUENCY

Russia 12, Us 11, U.s. 10, America 10, Ferguson 5, United States 4, Ukraine 4, Hertz 3, Pimm Fox 3, Argentina 2, Superstorm Sandy 2, Keri Geiger 2, Missouri 2, New York 2, Washington 2, Citibank 1, Avis 1, Vernon 1, Toital 1, Ken Lewis 1,
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  Bloomberg    Taking Stock With Pimm Fox    Pimm Fox helps you to think like a  
   professional investor and discover the next big thing.  

    August 20, 2014
    5:00 - 6:01pm EDT  

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k" fors is "taking stoc wednesday, august 20th. today's theme is danger. toker just invented a danger the financial system. we are joined by the cofounder of mazillow. we have details. the conflict between russia and ukraine makes an opportunity for one chief executive. he will meet the ceo of a company called inter-corp.. aqua fan looks to protect
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buildings from the dangers of flooding. a real threat with superstorm sandy catastrophe. all that and more over the next hour. shelbyyour program with holliday. >> hp out with earnings after the close of u.s. trainings. reporting mr. -- fiscal fourth-quarter sales that topped analyst estimates. profit was $.89 per share with revenue rising to 27.6 billion. taken a .5% and hurts. he may pursue representation on the board. according to the filing he wants to discuss accounting issues. a lack of confidence in management. angelo mozilla oh does not have to look. the u.s. attorney's office said
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to be preparing a simple lawsuit . as many as 10 other former countrywide employees. those are the headlines. the deal. ank you.nk for more on the story and bank of america's expect the settlement, i am joined by keri geiger. advisors to capital help manage fund for burn him happens toital and own over 200,000 shares of bank of america for his clients. nham and rmb capital. >> bank of america settlement -- expected to settle a huge civil claim, upwards of 17 million on issues related to the issuance
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of mortgages. bank of america acquired this in 2008 and 2009. the potential civil suit or pending civil suit is tied into that. essentially after the settlement we are expect it to see a civil suit for the same issues. it all goes back to the subprime mortgages largely blamed for fueling the financial crisis. of course of which countrywide was the largest issuer right up to the run-up of the financial crisis. like thisld something work, considering i am sure there were documents checked by lawyers about liability under the sale? it has been over seven years. >> it really has been vital while. tired of the shareholders being penalized for the ax of individuals.
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-- it really has been quite a while. it has cost bank of america shareholders close to 70 billion in terms of all the settlements and court costs. low-- mazilo paid for by bank of america. why are shareholders paying the price for actions of countrywide shareholders? >> is it bank of america shareholders paying for action by the then ceo ken lewis? >> that is true, he did these deals, no doubt about it. who should be punished? corporation or individuals who perpetrate these actions? >> that is the argument we have been wrestling with with all of these. jpmorgan master. then citigroup paid $7 billion last month for the same mortgage related issues. who should pay for that?
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?nd really, who is to blame also, you have to understand the justice department travails and there is a fine paid, no one is writing a check to the individuals who suffered because of the subprime crisis. >> with the bank of america settlement in previous settlements you have a portion i goes to consumer relief. we will see how that gets paid out to consumers. those who weres hurt by the crisis, we will wait and see. -- goe chunk goats straight to the government. you are correct in that a lot of it goes to the government and you have to see how that trickles down. of being able to draw a line under a very painful torsion under bank of america and would be good for
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shareholders. >> absolutely. i was surprised the stock was not more today. i think it wanted definitive news. i think if you look at the charts of the stocks, they were all substantially higher. would be nice to remove this as overhang. >> what is the business looking like right now for bank of america? >> i think they have been a good job of getting the cost out and selling nonstrategic areas. they are not a great little town community bank. they have been selling off in other places. costnk it helps the structure as well. i think they're trying to right size the ship. if you look at the market share throughout the industry, tremendous power. they just have to get the cost right and strategic focus on making money rather than preserving capital to pay settlements. the settlement does
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come through in the civil suit goes forward. >> i think it is terrific if they start pursuing individuals. i think it is much bigger news than just the settlement. i think it could be cutting-edge. >> any response from anyone in the banking industry about this? >> we did include a response from the attorney in this. see whatl wait to happens. keri geiger at bloomberg news. and the hands of men didn't capital advisors. coming up, eric holder in ferguson, missouri. u.s. attorney general holder there in the town north of st. louis. it has endured 11 days of unrest following the shooting of an unarmed lack teenager. late today the ferguson county prosecutor said there would be no grand jury decision on the shooting until october at the earliest. our own bloomberg reporter is
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joining us live from ferguson. what is the latest? >> you covered a lot of it. in town in meeting with fbi agents and federal prosecutors. also meeting with community leaders. he wants it to be a calming presence. there has been two weeks almost of clashes over the shooting death of an unarmed black teenager by a police officer. >> what can you tell us about events last night in ferguson? >> last night was another night of violent clashes, a little bit less violent. in going after that -- the lawbreakers, they did not use tear gas as they had been previously. those people were disbursed without using tear gas and one
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of the more call nights in the past couple of weeks. >> can you tell us about your ability to speak to people and have access to various locations in and around ferguson? >> there are a couple hundred reporters and members of the media covering this all over the world. as we cover the protests come up we have been on the frontlines, but the police have tried to keep us out of harms way. they try to cordon us off to certain sections but a lot of members of the media have been getting right in the middle of the action. a lot of us have gotten hit with tear gas ourselves but we have been able to talk to people. hundreds of protesters. we have been able to speak to them to find out why they're protesting. >> have you been able to speak to any of the people, their reaction to the word the grand jury will not have anything to offer until at least october? >> people have are even calling
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for the local prosecutors to recuse themselves from the case. now that it will be at least six weeks, more people saying he should be replaced. >> want to thank you for joining me. from ferguson, missouri. energy companies have been hit because of the conflict between ukraine and west and russia. coming up, a look at a company whose expansion plans were halted because of expansion in the region. superstorm sandy talked business is a lesson all over the united states, protect your property. you will meet a top executive on how they plan to do just that in the event of a storm. mort next. ♪ -- more next.
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ck" onis is "taking sto
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bloomberg. i am pimm fox. russia's ban on food imports from the european union could cost companies over 9 billion dollars. russia announcing the ban on food products from the eu and united states. retaliation or russia's interference in the conflict and ukraine. a company called and are core -- it isore understands what like to do business in russia. it had a strong conflict -- strong outlook of business in russia before the conflict. i am joined by the ceo. tell us about your potential business in russia. what was going on there? >> i am smiling at your and her -- your pronunciation. enter core develops equipment emissions from a
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wide range of companies, coal mines, oil drilling sites, distilleries and so on. gases ofundesirable all the industries typically gets layered -- flared. we are commercializing equipment that for the first time ever can use these gases to create power. it is a way of aiding the gasses tof become more efficient and essentially stop burning money. just hasave value but not been a to utilize them. we had a massive pipeline and russia, particularly because a few years ago president putin announced they are banning the flares.layers -- putin noticed all of the oil operations around the country were flaring a massive amounts
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of gas. you could see these in this guideline in the night. he passed a law to basically say we will transition the entire country and passed the problem to industry. industry and at situation that will enable them to stop. when he did that, that created a surge in demand for our tech knowledge he that dwarfed anything we were already seeing in other continents of the world. 40, 50 100o see the million in sales into russia over the next few years, just because we were the perfect solution for industries that excess gas. flaring >> tell us what happened. nothing all that dramatic.
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essentially nothing has been stopped or canceled, but we went from spending a significant amount of our teams time at negotiating rather large contracts, and those basically came to a standstill and are still there. stillnversations are amicable and they consistently tell us as soon as the tension stop, we will continue. >> these negotiations are on hold. explain exactly is what is the tech knowledge he? bigger than a bread box? who uses it now? lex we make equipment. we make a two megawatt solution in 250 watt solution. just to give you a sense of size, it can power 300 homes using the excess gas from a refinery or other industries. about 35 typically
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feet by 20 feet. not a massive amount of area. effectively what we are doing is using another way rather than combustion to utilize gases that literally have no technology today that can use them. pastf the society for the 250 years has basically generated power from combustion. we are not burning it, we are running it through a similar process called oxidation. we can generate the heat power, areite the fact the gases very corrosive and typically cause damage to most equipment you would want to generate power with. >> where could someone go to see your product in use? >> we have one operating in the netherlands and one in
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university of california irvine. just started commercializing this past year. expect to have a lot more installed across europe and other continents in the near future. >> many thanks to the executive. you can read more about the sanctions and russia having to do with the conflict in ukraine. also, more stories about russia. details. up, learning about a portable system designed to keep floodwaters from getting into buildings. it will now be deployed at the world trade center site in new york. details ahead. ♪
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ock" on is "taking st
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bloomberg. i am pimm fox. demonstratesfense the danger of urban flooding. remember the images of automobiles flooding in the street of new york and the new york stock exchange was flooded or two days. construction was halted. it is a temporary barrier system that can be installed quickly when a storm approaches. joining me is the director. for beingvery much here. i mentioned a moment ago that the site of the world trade center, now the freedom tower, will have these kinds of defenses against flooding. how did you come to be involved in the business? >> i was in the insurance building and looking for someone
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to expand operations. just seems like the next big thing. been changing. everyone needs to protect from flooding. how does it actually worked? >> it is made with baltic laminate. it basically lays out on the concrete. it opens. when the barrier opens, you have the weight of the water compressing on the horizontal toel, making it impossible flip over. >> is it impossible to use? >> a city block would run between 200,000-$400,000, sometimes a little more. >> where does it -- where is it made? >> it is made in norway. inst brought to the u.s. 2007. >> what was it created to do? >> originally to protect communities.
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mount vernon, washington, they used to have over 1000 people to ploy sandbags. now they have two dozen people spending three hours putting these in. of this,nufacturing does it take a lot of input, materials and employees? li >> we have a small lead time, a couple of months. is it currently deployed around the united states? >> probably 30 projects or more in new york city right now alone. some down at the restaurant in louisiana, which has been hit by a couple of hurricanes every few years. also in washington in the midwest. >> as far as competition, you have sandisk. do they offer a stronger ?rotection
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>> it is tested to be 100 times more effect it. the cost is the same as sandbagging once. designed to be used 20-30 times. >> you are always going to have spare parts that need to be replaced but it has been tapped -- tested up and down almost 100 times. we have a project in new jersey where they are being left outside for the past year already. >> what would this do to insurance rates? fm approval is part of the division that approves products to say we are ensuring you, go out and buy this. received approval. it helps the insurance rates in most instances. and a lot of them and allows you to get flood insurance.
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many buildings in new york and other parts of the country, you cannot even get it. you are living in a flood zone. this gives people an option. it there. to leave adam goldberg, the defect -- director of aqua fence usa. ♪
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>> this is "taking stock" on bloomberg. >> ups store is notifying customers of potential data reach. they dissected malware on computers and 24 states in the u.s.. 125,000 transactions were affected. target still struggling to rebound from the hacker attack faster. they cut the forecast for the year in a moneymen building push
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into canada takes a toll on profit. they expect full-year earnings as high as $3.30 per share. >> may have rampaged across city and villages, carrying unarmed civilians in cowardly acts of violence. they abduct women and children and subject them to torture and .ape and slavery they have murdered muslims, both sunni and shia by the thousands. >> the president said the united states will be vigilant and relentless. >> turning our attention now to another international story and finance. the government of argentina considering a plan to exit
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default by snubbing a u.s. court ruling. joining me is the chief former sauberhe and head trader at citibank. our own bloomberg reporter. you have been covering this story. explain what is the plan? planey have announced a for the past. seems like this time there has not been counter information. said they will submit an approval to congress that says bondholders who are currently unable to get debt payments because of a u.s. ruling blocking payments can give their money and argentina. basically throws the contracts to the wind and says you can get the payments and argentina. and if you want to formalize things, you can go ahead and swap your bonds for new ones that are under local legislation. >> what is your thoughts about
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this proposal by the argentine government? >> they will need to take some things out of the headlines. , they haveng these taken attention away from corruption charges against the vice president, higher unemployment, etc.. political issue as much as international finance? >> yes. the president of argentina. >> exactly. and self has very little chance of becoming real. there are too many difficulties in the plan to be implemented. all, they would be
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out of their mind to change to local paper. it is a different operation. the other thing is even -- anyone that anticipates is violating a u.s. court order. u.s. institutions should not participate. anyone who has this in the u.s. should not attach anything close to this because it violates court orders. they can freeze accounts. they could find argentina on a daily basis. to goould order investors claim the money and put it into an account of the court that later can be distributed. this is not over yet. i think we will see many of these events over the next few weeks and months. people youon the have spoken with, what is the response for investors? it is surprising because
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there are some investors that cannot involve themselves. they are real money investors and certain restrictions. be able toot participate. those people will have to sell bonds to the people more adventurous. some hedge funds have been buying bonds knowing it can go to the wild west situation and that this may be an out, and they may be more interested in participating. no matter what, everyone will be talking to their lawyer. everyone wants to know if they could ever end up being sued by participating in this. you have to be very risky to do this without knowing the legal ramifications. >> who are the parties involved on the investor side? >> bigger houses that have traditionally held bonds and maybe hold them like a benchmark.
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then we have a lot of hedge funds. saynow they have gone on to -- dan loeb. kyle bass has gone on record saying he owns. there are hedge funds. we haveult fonts radke -- marck brodsky that are at the center of this whole dispute. you're holding the bonds and will look at a year down the line, are you still going to hold the bonds and waiting for a resolution? fax i will, because i think long-term argentina offers a lot. the capacity to pay is the political situation by which the willingness to pay is not there. in about 18 months from now we
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will have a new order. the new government hopefully will solve the situation. most likely it will because when you talk to the presidential candidates, they all talk about the same issues so you know they will come in and solve the situation. >> one to thank you both so much. another headline today having to do a carl icahn announcing that he is taking an 8.5% stake in hertz, the car rental company. announcing he may see representation on the board. by more details, i am joined jamie butters. he was not the only investor making headlines today was he? >> not at all. he came right in the middle of a lot of activity. started yesterday after the close when hertz said they were making a number of changes. they were changing the directors
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on the board. that birch the team tree and other investors are asking the board to replace the ceo. preferably with scott thompson, the ceo of dollar thrifty. then in the middle of that car pops up saying he will take a large stake and make company -- make changes. there is a lot going on there. >> we know the stock fell dramatically. what is wrong with the business? >> they have problems with accounting and business. on the business side they seem to have trouble managing the fleet. they went where risk fleet a few years ago. back in the day the automakers would sell cars to hertz and avis and would sell them back for more than what they were worth often.
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fleetthey went where risk where they bought them out right, and take better care of them, the more opportunistic about well to sell them -- when to sell them. same but did not execute as well. they got upside down with that. they have a lot of old cars in the fleet. they have been running big discounts that have brought people to the counter but do not have enough people to serve them. that is the operations side. accounting have not reported results yet this year and said the last three years cannot be counted on. investors feel like they have been buying in the dark for far too long and need clarity. the little they got tells them this company is not doing as well as avis whose stock is up 70% this year. lex want to thank you very much, jamie butters. giving us more details about hertz.
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what ails you. how about using crowd sourcing to do so? a website that use detectives to diagnose chronic illnesses. you will meet the founder next. ♪
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>> crowd sourcing is getting into the world of science and medicine. the world of crowd sourcing wants to help offer to identify chronic illnesses. with details about all of this, --m joined by product and product visionary. explain exactly the personal stories that brought you to crowd med. littleas inspired by my sister carly who spent three years with a very difficult,
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chronic undiagnosed medical condition. over that time she saw almost two dozen doctors, incurred $100,000 in medical bills and took her he hears and a lot of pain and suffering before she finally got the correct answer. the knowledge of aowds we could help find solution and diagnosis and a fraction of the time and cost. >> how do you maintain that efficacy of the site? making sure people offering information are in fact genuine and thoughtful? structure a lot of set up to ensure medical protectorates are properly motivated and incentivize. we want to recruit the right medical the tech its and match them up with the right cases. discoverylot of features to facilitate that. we also have a reputation system to help set for eight the signal
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and noise and give the loudest voice to the most capable detectives. a lot of features in place to ensure that filtering. >> ethical insurance, health care insurance a big part of any illness or condition. how does that feed into what goes on? of our customers our patients. all of our cases are submitted by patients themselves and paid for by the patients themselves. be willing toould speak with insurers about making it a reimbursable expense for their membershing or subscribers could file an insurance claim for and think and timed save money with having their most difficult med,s solved on crowd instead of having them bounce specialistlist to
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racking up time and cost. >> talk about cost. how does it work? >> we have three options. a patient can submit the case for free. he require a $50 refundable deposit. secondly, a standard package $299 the patient gets a full 60 days on the site as opposed to 30 days in the free package. that includes a $200 medical the text of compensation offer that goes to the medical detective to do the best job solving their case. ,inally, the premium package where for $499 it includes a three hundred dollar compensation offer to the top performing medical the tech it's. the patients that that get the 299 or $499
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package, we can often solve their cases for of magnitude less than it would have taken in the medical system and 50 times less time according to our patient provided statistics. >> give us an example of someone that has used this? >> we have many. week we hear from patients who have their case successfully solved on our site. just earlier this week we heard from a patient who had been sick for nine years. a dozeneen almost different doctors and no one could figure it out. he posted the case on our website, and within two months found out the direct diagnosis and treatment and now on his way to recovery. he sent us a very warm thank you e-mail. >> what about the potential liability for those offering either the advice or diagnosis? thought about that a lot.
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we want to be very careful that the case solvers are shielded from any liability, which is a big concern am especially for the medical doctors on the site solving cases, so we do a lot of things to protect them and not only the terms of service that the legal documents patients have to agree to before submitting the case, and also we protect anonymity. a patient never knows who suggested a given diagnosis or who supported it. the reputation system assures only the best performing medical detectives can have a material impact on the patient's results. >> what would you like to see happen next? >> we hope at some point it can be a real alternative to patient's current options when it comes to solving medical mysteries. right now if you are a patient with an unsolved medical mystery
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you can either bounce from doctor to doctor, and many patients have done that for ands, or you can get online try to self diagnose and solve your own case, but we believe offering the crowd sourcing information can really provide the speed and cost advantages of the internet while still giving the accuracy and human touch that comes to the medical system. we hope at some point the patient says rather than see another doctor or spend 100 hours time to self-diagnosis online, i would rather submit my freeon crowd med and for or a small fee i can get better answers than either of the two alternatives. >> thank you for joining me, jerod heiman, the head of crowdmed.com. coming up, why traveling is particular and how you can make a lot of money if you are very good. also, a programming note.
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discussing the beheading of american journalist james foley and how it is causing some companies to play the role of censor online. twitter posting images of this particular execution. that is tonight at 6:00 and 11:00 eastern. ♪
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stock" onis "taking bloomberg. lee, monty became the youngest traveler in the world to travel to every country in the world. he has set his sights on becoming the first million-dollar travel blogger in the world. these companies call the travel trifecta launched in july in well on the way to reaching his alien dollar goal. he joins me now.
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what is the travel trifecta? >> basically a group of three travel blogger's highly successful and come from different angles. we basically package ourselves to companies, destinations, travel apps and everything to do with travel. basically a 341. we charge a monthly retainer or contract work and basically travel companies and pay for services. >> what do you do echo what do you actually do? you go and review the location? hotel, experience? >> what we do is customizable programs. basically a multimedia platform. , publicgs, social media speaking events. basically whatever the client is looking for. television, radio.
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it could be basically anything. we talked to the client and find out what they're looking for an customize the campaign and program based on their needs. work with tourism australia. we work with and after and a bunch of other destinations. we've basically listen to what they are looking for and design a campaign around that. thing as asit each destination or we will review an app or treat it or facebook is. we do everything honestly based on our own experience. we do not guarantee opinions. we do guarantee deliverables. >> if they ask you to put together a site and turns out what you are finding it's not
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great, you will tell people it was not great? >> 100% because it is the reputations on the line. travel blogging is such a cutthroat world because there is so many. basically the whole impetus of the travel trifecta. versusaring the cost advertising and a travel magazine? >> that is basically where it hatched from. if you will take a full-page ad, it will cost you $100,000 for one advertisement, one month and a lot of times people just throw it out. my idea was basically prolong that over 3, 6, 9 and 12 month time for the same amount of dollars but keeping it in front of people's eyes for a long time. with you,go traveling thank you. thank you for "taking stock." i'm pimm fox.
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goodnight. ♪
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>> live from pier 3 in san francisco, this is "bloomberg west" where recover renovation, technology, and the future of it is nice. ahead, hewlett-packard is getting a boost from improving pc sales reporting third-quarter earnings topping analyst estimates. this gives meg whitman a bastad she works to turn around the pc maker. we will take a look at the pc numbers in just a moment. olo saysceo dick cost they are suspending accounts that show imagery of american journalistme